Five-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - After announcing average demand for this month's two-year note auction on Tuesday, the Treasury Department revealed on Wednesday that this month's auction of $61 billion worth of five-year notes attracted modestly below average demand.

The five-year note auction drew a high yield of 0.904 percent and a bid-to-cover ratio of 2.36.

The Treasury also sold $61 billion worth of five-year notes last month, drawing a high yield of 0.788 percent and a bid-to-cover ratio of 2.49.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.41.

Looking ahead, the Treasury is scheduled to announce the results of this month's auction of $62 billion worth of seven-year notes on Thursday.